---
title: "Understanding the Market | HUAXIN CEMENT surged 85% yesterday and fell over 15% today. The Yaxia Hydropower Project will significantly boost cement demand in the Tibet region"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/249526521.md"
description: "HUAXIN CEMENT's stock price surged 85% yesterday and has since fallen over 15%, currently down 13.87% at HKD 16.02, with a trading volume of HKD 3.31 billion. The Yarlung Tsangpo River downstream hydropower project commenced on July 19 and is expected to significantly boost cement demand in the Tibet region, with HUAXIN CEMENT set to be the biggest beneficiary. The total investment for the project exceeds 1.2 trillion yuan, with anticipated cement demand reaching 20 to 30 million tons. Tibet Tianlu, as a local leading enterprise, will also benefit from this project"
datetime: "2025-07-22T07:40:06.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/249526521.md)
  - [en](https://longbridge.com/en/news/249526521.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/249526521.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/249526521.md) | [繁體中文](https://longbridge.com/zh-HK/news/249526521.md)


# Understanding the Market | HUAXIN CEMENT surged 85% yesterday and fell over 15% today. The Yaxia Hydropower Project will significantly boost cement demand in the Tibet region

According to Zhitong Finance APP, HUAXIN CEMENT (06655) surged 85% yesterday but has recently fallen over 15% during intraday trading. As of the time of writing, it has dropped 13.87%, trading at HKD 16.02, with a turnover of HKD 3.31 billion.

In terms of news, on July 19, the downstream hydropower project of the Yarlung Tsangpo River officially broke ground. The total investment for the project exceeds 1.2 trillion yuan. Morgan Stanley expects that during the construction phase, the cement and steel industries will directly benefit, with total cement demand for the project estimated to reach 20 to 30 million tons, with an average annual demand of 1 to 1.5 million tons. Among them, HUAXIN CEMENT's production base in Tibet is only 400 kilometers away from the project, and Morgan Stanley anticipates that HUAXIN CEMENT will become the biggest beneficiary, while China National Building Material and Conch Cement's production capacity in Tibet will also benefit.

China Galaxy Securities stated that due to the "short leg" nature of cement, the land transportation radius usually does not exceed 300 kilometers. The downstream hydropower station project of the Yarlung Tsangpo River will benefit cement companies with well-established market layouts in the southwestern region. Tibet Tianlu is the leading local cement enterprise in Tibet, with the company's revenue from the Tibet region accounting for 83.43% in 2024. The company's cement production in 2024 is expected to be 3.9369 million tons, with a market share in the Tibet region (based on production) of nearly 30%. As the Yarlung Tsangpo hydropower project progresses, Tibet Tianlu, as a local state-owned cement enterprise, is expected to dominate the supply of cement for the project due to its geographical advantages and local production capacity layout. Additionally, the overall cement production capacity in Tibet is limited, and during peak construction periods, cement may need to be transported from the Sichuan-Chongqing region, which is likely to benefit well-established companies like HUAXIN CEMENT and Conch Cement in the southwestern region

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